Hi,
I’m running an estimation for a DSGE model. I use a matlab program to solve for the steady state. steady;check; command is passed. That is, the steady state solve by matlab code can solve the static model.
But problems appear in estimation stage.
Error using == initial_estimation_checks at 92
The seadystate values returned by nlpaper1_steadystate.m don’t solve the static model!
Could anyone tell me why this happens?
Thank you!
JI
It could be that your steady state depends on the values of the parameters and currently it is only correct for one parameter combination. When using check, the steady state is checked at the initial parameter values given before the model block. However, in the estimation stage, the steady state is checked at different parameter values, i.e. the starting values of the estimated_params block.
You might also want to post your mod-file and steady state-file.